The Indian business community has demanded reduction in the CRR (cash reserve ratio) and the repo rate to insulate the country from the global financial crisis. The bankers hoped that RBI can cut the CRR in the next monitory policy review. The apex bank would take various steps to address the liquidity problem in the market. 

India needs Rs. 1,00,000 crore as fresh funds to meet its financial requirements and stopping further depreciation of rupee. Rupee is at a six year low compared to dollar. The depreciation is caused by huge amount of capital outflows from the domestic equity markets and selling of dollars by the central bank. The liquidity problem can remain as such in the coming months as per the market experts.

The chamber Federation of Indian Chambers of Commerce and Industry (FICCI) has urged the Government and the Reserve Bank of India (RBI) to cut CRR by 100 basis points and the repo rate by 150 basis points.

The industrial body also demanded other measures such as revised norms for the participatory notes (PN) policy and a further hike in the limit on investments in the corporate debt market. Associated Chambers of Commerce and Industry of India (Assocham) has also urged the Prime Minister for immediate release of Rs. 1,00,000 crore liquidity in the monitory system of the country. Similar appeal is made by the Confederation of Indian Industry (CII). It has also demanded further ease in norms for external commercial borrowings (ECBs).